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The Finance Minister said once the problem climaxes andThe Finance Minister said once the problem climaxes and the sectoral results start turning over, the situation would change. Citing the example of PNB, he said the bank last year made a Rs 12,000 crore operational profit, which is

The Finance Minister said once the problem climaxes and

The Finance Minister said once the problem climaxes and the sectoral results start turning over, the situation would change. Citing the example of PNB, he said the bank last year made a Rs 12,000 crore operational profit, which is not a low level of profit, but it declared loss because of NPA provisioning. "So it is the balance sheet provisioning which has led to that situation." These NPA loans were not given recently, Jaitley added. "These are old loans which relates to sectors which have been under stress. Those sectoral problems have been addressed significantly. In many of those sectors, the balance sheet has started changing and therefore slowly it must relate to the banks itself and reflect on their balance sheet," he said. Against the backdrop of mounting bad loans and record losses of public sector banks, Jaitley will hold a quarterly performance review on Monday with the heads of PSBs and Financial Institutions. He would "review the overall performance of PSBs during the financial year 2015-16 as well as with regard to the flow of credit to agriculture, insurance and MSE sectors among others", the Finance Ministry said in a statement. PTI JD ANZ SA ABM

This is unedited, unformatted feed from the Press Trust of India wire.

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